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Nickel Asia faces P7 million penalty as Mindoro geothermal deal ends
The Department of Energy (DoE) has officially and irrevocably terminated the geothermal renewable energy service contract of Mindoro Geothermal Power Corp. (MGPC), a subsidiary of Nickel Asia Corp., due to long delays and lack of progress on the Montelago Geothermal Power Project in Oriental Mindoro.
MGPC, a unit of Emerging Power Inc. (EPI) which is wholly owned by Nickel Asia, will pay a penalty of $120,000 (around P6.99 million) for unpaid fees, including training assistance obligations, within 30 days of receiving the DoE's termination letter.
The DoE's decision was based on MGPC's failure to meet commitments in its work program, with subsequent re-evaluation revealing the geothermal well might not be economically viable due to low mass flow and limited power generation potential.
This termination effectively ends over a decade of efforts to develop the geothermal site, which was part of Nickel Asia's diversification into renewable energy.
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